Correlation Between Jinhe Biotechnology and Gem Year
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By analyzing existing cross correlation between Jinhe Biotechnology Co and Gem Year Industrial Co, you can compare the effects of market volatilities on Jinhe Biotechnology and Gem Year and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jinhe Biotechnology with a short position of Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Gem Year.
Diversification Opportunities for Jinhe Biotechnology and Gem Year
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinhe and Gem is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial and Jinhe Biotechnology is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jinhe Biotechnology Co are associated (or correlated) with Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Gem Year go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Gem Year
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to generate 0.94 times more return on investment than Gem Year. However, Jinhe Biotechnology Co is 1.06 times less risky than Gem Year. It trades about 0.0 of its potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.0 per unit of risk. If you would invest 476.00 in Jinhe Biotechnology Co on August 26, 2024 and sell it today you would lose (38.00) from holding Jinhe Biotechnology Co or give up 7.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhe Biotechnology Co vs. Gem Year Industrial Co
Performance |
| Timeline |
| Jinhe Biotechnology |
| Gem Year Industrial |
Jinhe Biotechnology and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Gem Year
The main advantage of trading using opposite Jinhe Biotechnology and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Gem Year can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Gem Year will offset losses from the drop in Gem Year's long position.| Jinhe Biotechnology vs. Industrial and Commercial | Jinhe Biotechnology vs. Agricultural Bank of | Jinhe Biotechnology vs. China Construction Bank | Jinhe Biotechnology vs. Bank of China |
| Gem Year vs. Jinhe Biotechnology Co | Gem Year vs. Heilongjiang Transport Development | Gem Year vs. Hunan TV Broadcast | Gem Year vs. Zhangjiagang Freetrade Science |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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